Tale of the Tape 

Howdy folks. Markets continue to grind lower! 

Heavyweight selling left the Nifty (-1.1%) and Sensex (-1%) in the red. PS - the Nifty closed at the lowest point since June 26! Midcaps (-1.1%) and Smallcaps (-1.3%) also saw deep cuts. 391 stocks in the NSE 500 ended lower.

Except for Real Estate (+0.2%), all other sectors got wiped out or were flat. Auto (-1.9%), PSU Banks (-1.9%) and FMCG (-1.6%) were the top losers.

Indian renewable energy stocks are having a meltdown over worries of Trump’s love for fossil fuels. Read our top story on why these fears should be tempered slightly. 

Britannia was the top Nifty loser after a rough Q2. Meanwhile, Jubilant FoodWorks gained +6% despite mixed Q2 results. More details below.

RateGain Travel Technologies, Triveni Turbine and Uno Minda saw big moves today. Check out their charts below to find out why.

LIC was in focus after getting a double upgrade from JPMorgan. PS - the brokerage has raised its target price to Rs 1,075 p/sh vs Rs 790 p/sh earlier.

Results reaction. Akums Drugs hit a -10% lower circuit after reporting a -12% drop in Q2 topline. Shree Cement fell -4% intraday after its bottomline nosedived -81% YoY.

NMDC approved a 2:1 bonus issue. Shareholders will receive 2 bonus shares for every share held. 

L&T Technology Services (+3%) gained after acquiring a US-based AI software firm for $110 million.

Windsor Machines hit a +10% upper circuit after acquiring Gujarat-based Global CNC for Rs 343 cr.

Here are the closing prints:

Stock
Khel Khatam Paisa Hazam?

Indian renewable energy stocks are seeing a hard correction. Tata Power, Adani Green Energy, Premier Energies and Waaree Energies are down -5% to -21% over the last week. So WTF is going on?

FYI - the big hit to sentiment comes from Donald Trump’s victory in the US elections. There are two different factors at play here. Firstly, Trump’s anti-China stance generally favours Indian companies, which should be a boost to solar panel makers who have already benefited over the last two years. 

The second factor, however, is what markets are worried about: namely, Trump’s love for fossil fuels over clean energy. More specifically, Trump wants to repeal a Biden-era law that provided extra subsidies for renewables & incentivised its investment.

So, the question is, how real are these fears? Well, if Trump actually wants to do a full-blown repeal, he needs a supermajority in the Senate to overcome a filibuster by the Democrats, which he doesn’t have. Also, Trump’s anger has largely been focused on offshore wind projects, NOT solar. 

Finally, experts say a lot of Biden’s policies on clean energy investment have ALREADY yielded economic growth + job creation in Republican states like Texas and Nevada. So it’s tough for him to walk it back. As Canary CEO Dan Eberhart notes: “While Trump’s energy policy will likely center on traditional fossil fuels, an outright retreat from clean energy investment is improbable.” 

Big Picture: Trump is a riddle wrapped up in a mystery. The safest thing to do is wait and watch at this point to see how much he follows through on his agenda. FYI - some of the recent renewable energy stock correction is also because of INSANE valuations. Waaree Energies for instance is STILL +91% from its IPO price. So don’t freak out just yet!

Stocktwits Specials
ST India Momentum Index 🚀 

Here’s a quick yet detailed look at the Stocktwits India Momentum Index—tracking the top 10 Nifty 500 stocks based on yearly returns. In about 5 minutes, we’ll walk you through the top 3 momentum stocks and share trade setups from SEBI RAs on Stocktwits for each.